CFR Regulations

§ 120.829

13 CFR Ch. I (1–1–13 Edition)

§ 120.829 Job Opportunity average a
CDC must maintain.
(a) A CDC’s portfolio must maintain
a minimum average of one Job Opportunity per an amount of 504 loan funding that will be specified by SBA from
time to time in a FEDERAL REGISTER
notice. Such Job Opportunity average
remains in effect until changed by subsequent FEDERAL REGISTER publication. A CDC is permitted two years
from its certification date to meet this
average.
(b) A CDC must indicate in its annual
report the Job Opportunities actually
or estimated to be provided by each
Project.
(c) If a CDC does not maintain the required average, it may retain its certification if it justifies to SBA’s satisfaction its failure to do so in its annual
report and shows how it intends to attain the required average.
[61 FR 3235, Jan. 31, 1996, as amended at 68
FR 57981, Oct. 7, 2003]

§ 120.830

(iii) Statement of source and application of funds;
(iv) Such footnotes as are necessary
to an understanding of the financial
statements; and
(v) The accountant’s review report.
(b) For each new associate and staff,
a Statement of Personal History (for
use by non-bank lenders and CDCs) and
other information required by SBA;
(c) Reports of involvement in any
legal proceeding;
(d) Changes in organizational status;
(e) Changes in any condition that affects its eligibility to continue to participate in the 504 program; and
(f) Quarterly service reports on each
loan in its portfolio which is 60 days or
more past due (and interim reports
upon request by SBA).
(g) Other reports as required by SBA.
[61 FR 3235, Jan. 31, 1996, as amended at 68
FR 57981, Oct. 7, 2003; 73 FR 75518, Dec. 11,
2008]

EXTENDING A CDC’S AREA OF
OPERATIONS

Reports a CDC must submit.

A CDC must submit the following reports to SBA:
(a) An annual report within one hundred-eighty days after the end of the
CDC’s fiscal year (to include audited or
reviewed financial statements of the
CDC, as applicable, and any affiliates
or subsidiaries of the CDC prepared in
accordance with § 120.826(c) and (d)),
and such interim reports as SBA may
require.
(1) The audited financial statements
must, at a minimum, include the following:
(i) Audited balance sheet;
(ii) Audited statement of income (or
receipts) and expense;
(iii) Audited statement of source and
application of funds;
(iv) Such footnotes as are necessary
to an understanding of the financial
statements;
(v) Auditor’s letter to management
on internal control weaknesses; and
(vi) The auditor’s report.
(2) The reviewed financial statements
must, at a minimum, include the following:
(i) Balance sheet;
(ii) Statement of income (or receipts)
and expense;

§ 120.835 Application to expand an
Area of Operations.
(a) General. A CDC that has been certified to participate in the 504 program
may apply to expand its Area of Operations if it meets all requirements to
be an Accredited Lender Program
(ALP) CDC, as set forth in § 120.840(c),
and demonstrates that it can competently fulfill its 504 program responsibilities in the proposed area.
(b) Local Economic Area Expansion. A
CDC seeking to expand its Area of Operations into a Local Economic Area
must apply in writing to the Lead SBA
Office.
(c) Multi-State CDC Expansion. A CDC
seeking to become a Multi-State CDC
must apply to the SBA District Office
that services the area within each
State where the CDC intends to locate
its principal office for that State. A
CDC may apply to be a Multi-State
CDC only if:
(1) The State the CDC seeks to expand into is contiguous to the State of
the CDC’s incorporation;
(2) The CDC demonstrates that its
membership meets the requirements in
§ 120.822 separately for its State of incorporation and for each additional

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